Dexcom (Nasdaq:DXCM) today posted first-quarter results that came in ahead of the Wall Street forecast.
Shares of DXCM fell nearly 6% to $55.99 apiece in post-market trading today.
The San Diego-based continuous glucose monitor (CGM) developer reported profits. of $199.5 million. That equals 51¢ per share on sales of $1.19 billion for the three months ended March 31, 2026.
Dexcom recorded an 89.3% bottom-line gain on a sales increase of 15%.
Earnings per share landed 4¢ ahead of expectations on Wall Street. Sales also topped estimates as experts projected $1.17 billion in revenue.
Highlights in the quarter included the expanded launch of the G7 15 Day CGM across all channels in the U.S. The company also introduced Smart Meal Logging features onto its Stelo over-the-counter platform and showcased strong clinical evidence at ATTD 2026.
Dexcom reiterated its 2026 guidance for revenue between $5.16 billion and $5.25 billion. That would mark growth between approximately 11% and 13%. The company forecasts non-GAAP gross profit margin to land between 63% and 64%.
The company raised its non-GAAP operating margin (23%-23.5%) and adjusted EBITDA margin (31%-31.5%) outlook.
“Dexcom delivered strong revenue growth and margin performance to start the year, reflecting healthy demand for Dexcom CGM and continued operational improvement,” said Jake Leach, Dexcom president and CEO. “We will work to build on this momentum throughout 2026 and look forward to highlighting Dexcom’s long-term growth opportunity at our Investor Day in the coming weeks.”
Earnings call takeaways for Dexcom
On the company’s first-quarter earnings call, Leach noted another recent reimbursement win covering the type 2 non-insulin population. He said that, as of this summer, Prime Therapeutics will cover Dexcom CGM for all people with diabetes. According to Leach, this sets Dexcom up to have more than 7 millino type 2 non-insulin lives covered commercially by the end of 2026.
Dexcom also views future CMS coverage as “only a matter of time,” bringing the technology to more people with diabetes.
“While this is a great start, we will not be happy until we have coverage for all people with diabetes,” Leach said.
Leach also said the company began manufacturing new adhesive technology that the FDA cleared earlier this year. It expects to strengthen sensor survivability, with a launch planned in the coming weeks. Other coming rollouts include software updates, like a “complete redesign of Stelo.” This includes a more consumer-friendly offering, more AI-driven personalized insights and additional food logging capabilities.
Meanwhile, Leach says the company continues to see the G7 15 Day product drive momentum.
“We did see performance improvements across our entire portfolio when it comes to the reliability of our product, but when you think about the 15 Day in particular, it has that new algorithm and the extended wear, and that is something that patients very much value,” Leach said. “The convenience of the longer wear, and then the algorithm, the performance and reliability of that product, is really driving new starts as well as conversions over to it.”
The analysts’ take
BTIG analysts Marie Thibault, Alexandra Pang and Sam Eiber maintain a “Buy” rating for Dexcom after the quarterly results.
The analysts pointed to management’s expectations for sustained momentum with “record global new starts and reported share gains.”
Dexcom will host an Investor Day event this month to share further information on future growth drivers.
“While we understand some investor scrutiny of the U.S. business and overall CGM market dynamics, we believe this was a solid start to the year for DXCM and think the company can keep notching beats,” the analysts wrote. “We look toward the Investor Day in a couple of weeks for more detailed updates on the LRP, U.S. volume and pricing dynamics, and International growth plan.”
